Pan-Pacific Conference XXXIV. Designing New Business Models in Developing Economies

managerial agility and capability, African
businesses and especially SMEs should be assisted
to think and act strategically [7].
Some of the Management Interventions Carried
out by AMSCO.
When AMSCO intervenes in a business, it provides
hands-on, experienced, middle - to top level
managers to selected companies on three to five
year contracts. Their key aims include assisting
companies to:
Install management systems
Improve operational and financial
performance
Transfer capacity to local managers
AMSCO provides technical and administrative
backup support to these managers and monitors
their progress to ensure that the targets of the client
businesses are met.
3. RESEARCH METHODOLOGY
The population of this study were 247 enterprises
that have had AMSCO strategic management
interventions within the southern African region
during the period 2008 - 2011. The assisted
enterprises were distributed across seven southern
African countries namely South Africa (81); Angola
(26); Zambia (67); Malawi (12); Botswana (16),
Namibia (20); and Mozambique (25).
In the first stage of data collection a selfadministered
questionnaire was distributed to a
purposive sample of 100 businesses that completed
a three-year intervention process by AMSCO. For
the second stage information on the 55 enterprises
that completed the questionnaire were retrieved
from company records such as reports, financial
statements, employment records, industry
documentation, the AMSCO Manager’s quarterly
reports and relevant databases. Comprehensive and
adequate information and records were retrieved for
45 businesses. The questionnaires, reports,
statements and documents were analysed to
determine the performance of the enterprises
supported by AMSCO prior to, during and after the
strategic management interventions. Through this
process the impact of the strategic interventions on
the businesses were determined.
4. RESULTS
The results of the survey and analysis of the
business records were combined to determine the
profile of the businesses and demographics of the
owners
Business profile
Sixty-five percent of the businesses were SMEs and
35% large businesses. The revenue of the businesses
ranged between $5 286 and $424 670 000 per
annum on commencement of the intervention. The
number of employees ranged between 4 and 2513 in
the first year.
The businesses included in the study were nine
businesses in tourism and hospitality; seven
agricultural businesses; five businesses in finance;
three insurance companies; two retail companies;
two pharmaceutical companies; two manufacturing
companies and one of each of commodity trading;
export and trading; media and communication;
transport; development; professional services;
education and property.
The business structures were 45% fully locally
owned; 25% joint venture with minority foreign
ownership; 22% joint venture with majority foreign
ownership; 4% multinational subsidiary, 4% did not
report.
At 75% the majority of the business owners and
managers of the participating companies were male,
70% were aged between 36 and 55 and 85% have
Bachelor degrees or post graduate qualifications.
Business performance results
To determine the profitability and growth of the
businesses their financial performance, employment
information and business practices were evaluated
before and after the intervention.
Financial Performance and Employment
Results from the survey regarding revenue,
profitability and employment pre- and post AMSCO
intervention on respective statements were as
follows:
Increase in revenue 31% pre, 84% post.
Positive cash flow 22% pre, 69% post.
Waste in resources 55% pre, 22% post
Management able to plan 24% pre, 82% post.
Made profit 22% pre, 67% post.
Increase in profits 43% pre, 72% post.
From the data retrieved from AMSCO’s records
74% experienced an increase in revenue after the
AMSCO intervention, 57% experienced an increase
in EBITDA and 62% experienced an increase in net
profit.
Employment opportunities increased 58% pre, 91%
post
Retention of staff 91% pre, 100% post.
Premature resignations 56% pre, 36% post
Training of local employees 60% pre, 96% post.
Increase in employee numbers in 76% of the
businesses and a decrease in 22%. The net change in
employee numbers over the three years varied
between -30 and 4,586 with a total of 6577 jobs
created and 182 job losses, a net gain of 6395 jobs.
The average number of new jobs per business were
48, excluding the outlier were 4586 jobs were
created.
Business practices, systems and processes
Results from the survey regarding business
practices, systems and processes pre- and post
AMSCO intervention on respective statements were
as follows
good business practices 34% pre, 84% post
good corporate governance 28% pre, 83% post
efficient production 20% pre, 87% post
local employees in management 38% pre, 91% post
5. DISCUSSION OF RESULTS
There was a marked increase in revenue,
profitability, EBITDA and positive cash flow,
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